Tomahawk, WI 09/19/2014 (Basicsmedia) – Wall Street remained unimpressed according to CNBC’s Jon Frott after Oracle Corporation (NYSE:ORCL) provided a below-par guidance for the year. A shift into cloud-computing seems to be hurting the company’s margins seen by a slump in profit and sales for the first quarter.
The announcement of the first quarter results also came with the company announcing that its long-serving CEO, Larry Ellison, was stepping down having occupied the seat for more than 35 years. Oracle posted a revenue of $8.6 billion for the first quarter, which was up by 2.7%.
“Wall Street not impressed Oracle guiding to total revenues up to 2-6% constant currency and guiding to EPS of non-GAAP 53-57 Cents Wall Street had been hoping for 62 cents overall. There are some currencies issues mixed along with that along with the shift to the cloud,” said Mr. Frott.
Oracle Corporation (NYSE:ORCL) fell short of Wall Street expectations after reporting a profit of 62 cents against estimates of 64 cents and a revenue of $8.78 billion. A point of concern in this case is the fact that this is the third year that the company has registered a growth rate of less than 5%. The stepping down of Ellison has since seen the appointment of Mark Hurd and Safra Catz as the next CEOs.
Ellison is to take over as Oracle Corporation (NYSE:ORCL)’s Executive chairman of the Board as well as the Chief Technology Officer.
Ellison steps down from the CEO post after guiding the company into acquiring more than 100 companies for more than $50 billion consequently bolstering the company’s database hardware and application businesses. Oracle Corporation (NYSE:ORCL) remains a leader in the supply of software and gear needed for a swift shift into web-based computing especially for corporates.
Oracle Corporation (NYSE:ORCL) has also announced that its board of director has approved a $0.12 cash dividend offer per share to be’ paid on October 29, 2014. Oracle also plans to repurchases an additional $13 billion of common stock under it’s share repurchase program.